Amman – Minister of Energy and Mineral Resources Saleh Kharabsheh signed two memoranda of understanding on Tuesday with Harmony Investments Company's (HINCO) Director General Khalil Abu Rub to evaluate the oil and gas potential in the West Safawi and Sarhan areas.
اضافة اعلان
Bahjat Adwan, Director of Natural Resources Projects at the Ministry, outlined the scope of the memoranda, which includes evaluating existing well data, analyzing surface geology and stratigraphy, and assessing the physical properties of the wells.
The studies will also involve seismic data analysis, gravity and magnetic data evaluation, and an assessment of drilling conditions. The company is obligated to submit monthly progress reports on its activities in the two areas.
Adwan added that each memorandum is valid for 12 months, with the possibility of a one-year extension upon the company’s request. He stressed that the company must employ no less than 70 percent Jordanian workforce in each project.
He also noted that the ministry has adopted an advanced model for memoranda of understanding, which includes strict bank guarantees to ensure compliance with agreed work programs and timelines. This model permits companies to drill new wells and re-enter old ones, with all hydrocarbons produced during the memorandum period designated for state benefit. The company may recover its operational costs in subsequent years after a commercial discovery and the signing of a production-sharing agreement.
Kharabsheh emphasized that the memoranda are intended to conduct thorough technical evaluations of the regions' potential for oil and gas production. The studies, which will be carried out over the course of one year for each area, may pave the way for future production-sharing agreements, contingent upon the company’s adherence to its work program as stipulated in the memoranda.
The minister explained that the company is required to provide an independent oil drilling rig capable of reaching depths of at least 2,500 meters to carry out the drilling activities within the specified period. He also noted that any hydrocarbons produced during the memoranda period would be fully owned by the ministry, with the company not entitled to any compensation.
Abu Rub expressed optimism about the agreement, stating that it would leverage the company’s human and technical expertise, particularly from its work in neighboring countries. He also praised Jordan's local expertise, which will be a valuable partner in implementing the agreements and benefiting from the combined experiences.
Sharif Bayoumi, General Manager of Schlumberger, which is partnering with HINCO, highlighted the company's commitment to providing unlimited technical support. He pointed to the introduction of new exploration and drilling technologies, including artificial intelligence and digital analysis, to accelerate progress.
HINCO is a Jordanian company making its entry into the oil and gas exploration sector, backed by teams with extensive experience in the field. The company is expected to commence drilling in the second half of the memorandum period.
HINCO is also the owner of a gas liquefaction project at the Risha field, which aims to convert natural gas from a gaseous to a liquid state for easier transport and industrial use.
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